Intel hopes acquisition will help its "hardware enhanced security" efforts

Intel,
the world's largest maker of computer processors, on
Thursday announced news
that shocked the tech world. The firm would be acquiring
antivirus
software vendor McAfee at a price of $48 USD per share, for a
total acquisition price of $7.68B USD.

Intel made it clear that one major reason
for the acquisition was to expand its wireless security offerings.
Intel, a major maker of wireless
chipsets, believes that the industry is failing
to address mobile security even as the market explodes with
smartphones, tablets, and other mobile devices.

Paul Otellini,
Intel president and CEO, comments:

With
the rapid expansion of growth across a vast array of
Internet-connected devices, more and more of the elements of our
lives have moved online. In the past, energy-efficient
performance and connectivity have defined computing requirements.
Looking forward, security will join those as a third pillar of what
people demand from all computing experiences."

The
addition of McAfee products and technologies into the Intel computing
portfolio brings us incredibly talented people with a track record of
delivering security innovations, products and services that the
industry and consumers trust to make connecting to the Internet safer
and more secure.

The
acquisition also will allow Intel to expand what it calls
"hardware-enhanced security". Similar to
Intel's hardware-enhanced
virtualization technology, the idea here is to directly implement
security features in hardware, an approach that can offer energy
savings and faster performance.

States Renée
James, Intel senior vice president, and general manager of the
company's Software and Services Group, "Hardware-enhanced
security will lead to breakthroughs in effectively countering the
increasingly sophisticated threats of today and tomorrow. This
acquisition is consistent with our software and services strategy to
deliver an outstanding computing experience in fast-growing business
areas, especially around the move to wireless mobility."

McAfee
is coming off a strong year in 2009, in which it earned a total
revenue of $2B USD, the most of any dedicated security firm.
The company was founded in 1987 and is based out of Santa Clara,
Calif., the same location as Intel's headquarters. Intel was
founded in 1968.

The surprise announcement has approved a boon
for investors with McAfee shares. Share prices soared over 50
percent from around the $30 mark to above $47.

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